U.S. and Iran wrap up ‘most intense’ nuclear talks with no deal — more negotiations ahead
The Iranian negotiating team is heading to the site of negotiations with the United States in Geneva, Switzerland, on February 26, 2026.
Iranian Ministry of Foreign Affairs | WANA | via Reuters
Iranian Foreign Minister Seyed Abbas Araghchi stated that the last round of US-Iran negotiations did not result in a breakthrough, that both sides agreed to extend the negotiations, and that the talks were “the most intense ever.”
“Further progress has been made in our diplomatic relations with the United States,” Araghchi said, adding that both sides plan to engage more “in detail” on critical issues, including the end of US sanctions on Iran and “nuclear-related steps.”
The two sides made “significant progress” in high-stakes talks in Geneva, Switzerland, and agreed to meet in Vienna next week to discuss technical details. Omani Foreign Minister Badr Albusaidimediator of negotiations.
Earlier this week, US President Donald Trump said Iran wanted more of a “deal” than the US, with Tehran’s rejection of a commitment not to develop nuclear weapons remaining a key sticking point keeping the deal afloat.
In his State of the Union address earlier this week, Trump said: “They [Iran] “We want to make a deal, but we haven’t heard the secret words: We will never have nuclear weapons.”
Tensions have remained high, with the US amassing a major military force in the Middle East and Trump warning last week that “bad things” would happen if Iran did not reach an agreement on the future of its nuclear programme.
This week’s third round of talks was led by US special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner, while the Iranian delegation was led by Araghchi.
Wall StreetJournal reported Earlier on Friday, the US team was said to have tough demands from the Iranians, including the destruction of three main nuclear facilities at Fordow, Natanz and Isfahan and the delivery of all remaining enriched uranium to the US. Iranian officials objected to these demands.
The team also demanded that any nuclear agreement last forever and not contain so-called sunset clauses, the newspaper reported, citing unnamed US officials.
From nuclear program to ballistic missiles
While Iran’s nuclear program is at the center of the negotiations, the United States is also pressuring Tehran to halt its ballistic missile development program. But Tehran has insisted on its right to enrich uranium in the country, saying it is needed for energy production.
Just before the latest talks in Switzerland, US Secretary of State Marco Rubio said Iran’s reluctance to discuss the development of intercontinental ballistic missiles was a significant obstacle.
Trump administration also demanded that Tehran stop support regional armed groups and end the repression of indigenous protesters.
Analysts have warned of the risk of a military conflict that could cause turmoil in the Middle East and oil markets if the two sides fail to achieve a meaningful breakthrough.
“Absent a diplomatic breakthrough in the coming days, the United States risks entering into a military conflict with a significant potential to escalate tensions,” said Michael Hanna, director of the International Crisis Group, a Brussels-based think tank.
Hanna also noted that Washington’s priorities are still unclear as it presses on a wide-ranging list of demands for Tehran: “It is unclear whether the administration itself has a fixed idea of the desired end point.”
Tehran’s priorities in the talks include lifting sanctions that have crimped its economy and fueled a currency crisis, leading to widespread protests against the Islamic Republic in December.
The outcome of this week’s indirect talks will be important for the direction of oil prices as traders weigh potential supply concerns if hostilities escalate.
WTI futures It fell 35 cents, or 0.24%, to $64.97 a barrel on Friday. Brent Crude futures lost 38 cents, or 0.30%, to $70.54 a barrel.
“The market can expect a full response until the extent of potential US action against Iran becomes clear,” said Warren Patterson, head of commodity strategy at ING Bank, predicting that limited retaliation from Iran and “targeted and brief” attacks that disrupt energy infrastructure – such as those seen in June last year – could lead to a short-lived rise in oil prices.
But in the event of long-term action by Washington and more aggressive retaliation by Tehran, oil prices will likely remain high due to supply risks.
Investors will also watch OPEC+’s decision on April oil production this weekend.
“If we want to see tensions ease between the US and Iran, this should allow weaker fundamentals to feed into a lower fixed price – particularly if OPEC+ continue their supply increases from April, which we believe they will agree to this weekend,” Patterson said. he said.
